Question

To ask Her Majesty’s Government what assessment they have made of the report by KPMG <i>Skills to Build?</i>, stating that housebuilding capacity could be restricted by a construction skills shortage; and whether they will take steps to increase the amount of education and training places for construction trades.

The Government has made no separate assessment of the KPMG report. There are a number of reports that provide a good indication of the skills the construction industry believes it will require between 2015 and 2019, for both housing and wider construction.

The Government values post-16 education, including construction education and training, highly. We have made substantial progress driving up the quality and rigour of the post-16 offer, and area-based reviews of 16+ provision are providing an opportunity for institutions and localities to restructure provision to achieve maximum impact.

Initiatives, by the Construction Industry Training Board (CITB), or flowing from the work of the Construction Leadership Council, are seeking to encourage more young people into construction careers including the launch of the GO-Construct website and work with the National Careers Service and Construction Ambassadors for schools. In addition the CITBhas developed a range of initiatives, working closely with the Department for Work and Pensions, the Armed Forces resettlement service and Local Enterprise Partnerships, to encourage experienced individuals into the sector.

While CITB returned over £42m last year, supporting 18,500 first, second and third year construction apprentices, it is clear that the sector is not currently offering enough apprenticeships nor opportunities for young people to train. The 17,000 apprenticeships starts in 2015/16 is still some way below the 27,000 offered in 2006. The CITB has developed a number of shared apprenticeships schemes and reformed the grant process to encourage apprenticeship take up. In addition, the Government continues to pay AGE grant, on top of its usual support for the training of young apprentices, to encourage companies to take on their first apprentices.

At the summer budget the Chancellor announced a levy on large employers across all sectors to fund apprenticeships. This will link larger employers directly to its skills investment and promote the value, and drive the uptake, of apprenticeships.

The Chancellor will announce further details of the apprenticeship levy, including the scope and rate, at the Spending Review.